Alternative Links: 42% Have No Idea

Firms such as Manning & Napier have also looked to non-traditional or alternative bond funds as an interest-rate hedge. In late 2014, the firm added a 5% allocation to fixed-income managed futures for the first time within its nearer-dated TDFs, according to Morningstar. The position was carved out of the overall fixed-income bucket.

“Some macro funds blame their challenges on an investment environment they say isn’t ripe for their strategy. Central banks in the U.S. and Japan have kept interest rates steady, creating fewer opportunities to profit from moves, they say. Meanwhile, many funds have failed to profit from large selloffs in markets including China and Brazil.”